Page 8 - 2016 State of the Market from AmWINS
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LINES OF BUSINESS
CASUALTY
Automobile liability remains a challenge, but all
other areas of casualty continue to favor buyers
In many respects, the story of the casualty Brokerage in Chicago, Illinois. “We’ve tail casualty space, adding even more
market in 2016 sounds like a repeat of seen some real outliers over the past capacity,” says Dillon.
2015. Except for some problem areas, few years, where accounts are being
the market continues to soften this year written by markets that normally wouldn’t Product recall likewise continues to
thanks to an influx of capacity, and any be interested because they are making see strong underwriting appetite, with
pullback by a carrier from a particular line relationship-based decisions for brokers.” brokers able to access ample capacity
or class is quickly compensated for by and find favorable terms. London is being
another looking to expand. Carriers are trying to compete not just on particularly aggressive in this arena, with
rate but also coverage. “Standard lines underwriters undercutting the domestic
“Competition and capital availability are writers are starting to throw in additional market on price, according to Ciccarelli.
at an all-time high, which is keeping coverages, such as product recall, various
rates down significantly,” says George types of professional liability, and cyber For product liability overall, carriers
Abernathy, executive vice president liability on some excess placements,” remain willing to offer ancillary coverages,
and national casualty practice leader at says Chuck Ciccarelli, executive vice including manufacturers’ E&O and
AmWINS Group, Inc. president and casualty broker at AmWINS products pollution, and to include
Brokerage in Edison, New Jersey. product design within the definition of
Trouble-free accounts continue to see coverage. The few exceptions to an
rate decreases by as much as 10 to Although the market hasn’t reached the overall robust underwriting appetite
20 percent. Carriers trying to increase bottom yet, it is unclear how long this remain in the most difficult classes, with
rates on loss-prone accounts are having downward trend can be sustained. “We the toughest risks being in industries that
moderate success as others are willing are seeing an increase in claim severity have experienced significant class action
to write the business to meet premium and a number of carriers are getting stung lawsuits, such as invasive medical devices,
growth objectives. by development in prior-year losses,” pharmaceuticals, tobacco and e-cigarette
Abernathy says. products. Nevertheless, most accounts
“Even as some carriers exit certain can still find coverage.
classes, there is ample capacity to pick Expect current conditions to continue,
it up,” says Tom Dillon, executive vice particularly as alternative capital looks to “It’s definitely a buyers’ market, and we
president and casualty broker at AmWINS invest in the casualty market. “Eventually, expect it to remain that way,” says John
the alternative products that are seen in
the property market may look to the short-